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G-8 Leaders Remain Concerned about Recession; Testing Federal Security: Bomb Parts Smuggled into Government Buildings; Marines Request More Afghan Troops; Ahmadinejad Defends Iran Vote's Legitimacy; Wal-Mart Opens in India

Aired July 08, 2009 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. Security in the spotlight this morning. We're going to be talking about it here. That's for sure.

Our Jason Carroll is going to be reporting on an undercover investigation that could be revealing some frightening concerns about security at some federal buildings across the country.

Also, our Pentagon correspondent Barbara Starr is looking at possible snags in the new offensive in Afghanistan. We'll tell you about that as well.

And also CNN's Paula Newton has the very latest with the president and the G-8 summit, where global security threats are now being discussed.

It is Wednesday, July 8th, I'm Heidi Collins, and you are in the CNN NEWSROOM.

But it is the global recession that is taking primary focus as leaders of the G8 nations meet in Italy today. President Obama arrived in Rome just a few hours ago, and then choppered to the summit site near where a devastating earthquake hit in April.

Mr. Obama is in the middle of a weeklong overseas trip that will take him next to Ghana.

For more on the G-8 summit now, we go live to CNN's Paula Newton in L'Aquila, Italy.

So, Paula, good morning to you.

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: And good morning, Heidi. An ambitious agenda as always here at these G-8 summits. The point is what are they actually going to get done? You know some governments talking now about perhaps this economy, global economy biting us again.

And in terms of getting to that double dip, what they're discussing perhaps not formally on the agenda, but a lot of leaders behind the scenes telling President Obama that look, we're afraid that we could hit the skids again here and that the recovery really is so vulnerable, so weak, that do we need another stimulus package? Now here in the White House certainly officials saying, look, whatever's done is done on a country-by-country basis. But the point is here -- what we heard time an again from many leaders is that if it isn't some kind of a coordinated effort, it isn't going to work.

The White House saying it is looking into all options at this moment but as I said, an ambitious agenda here. And we're not quite sure what they're actually going to get through, even though we're here for three days.

COLLINS: Yes. Understood. Well, Paula, as we mentioned in the introduction to you, this is the same town that suffered that massive earthquake back in April. We understand some aftershocks are still rocking that same area.

What's the backup plan in the event of another earthquake while all this is going on?

NEWTON: Well, the tremors can be quite severe. And I've been through a few of them, and they really can do throw you off your game. Now there are 12 helicopters waiting on standby to chopper the leaders back to Rome if necessary.

But you know, this area here is quite secure. The building is earthquake-proof, so they assume that they won't be having any problems with this. But the venue floor is really unique. I mean, really, just a few miles from here, Heidi, you still have people living in tents. Tens of thousands of them.

COLLINS: Wow.

NEWTON: Some of them writing banners that I saw coming in saying instead of "yes, we can," "yes, we camp." What they want out of this G8 Summit, they want to make sure that they're in permanent housing by winter. And they're hoping that these G8 leaders will help. Certainly President Obama will be touring the devastation, as will Michelle Obama, later today.

COLLINS: All right. Our Paula Newton for us live from L'Aquila, Italy this morning with the president. Thank you, Paula.

Now we know the G-8 is made up of the world's leading industrialized countries, but why else is it important?

Our Josh Levs has been looking into that. So, Josh, what are you finding out?

JOSH LEVS, CNN CORRESPONDENT: Heidi, I'll tell you something. This group of eight nations can impact the things we spend money on every day from the price of gasoline to the cost of basics you buy at the grocery store.

It can also take on the biggest issues in the world like climate change, international politics. What happens at this summit seriously might impact how we live for years to come, if this group of leaders take certain actions. We're going to break that down for you. COLLINS: All right, Josh. Thanks so much. We'll check back a little bit later on. Appreciate that.

Meanwhile, building bombs in the bathroom. A new report highlights serious gaps in security at federal buildings. In 10 high- level buildings, undercover investigators were able to smuggle in bomb components and assemble the explosives without being detected.

CNN's Jason Carroll is joining us now live from New York with more on this GAO investigation.

So, Jason, what is the solution here? I mean is there a way to fix what we're seeing?

JASON CARROLL, CNN CORRESPONDENT: Well, I think so, Heidi. According to this report, basically what they might have to do is just find a different way of training some of these guards who were out there.

But first of all, let me give you what the bottom line of this basic report is.

COLLINS: Sure.

CARROLL: Which is basically that the Federal Protective Service isn't doing a good job, Heidi, at protecting the government buildings it's supposed to. The proof all caught on tape.

I want you to take a look at some of this. Investigators say they were greeted by this sight. That's a security guard asleep at his post, Heidi. Investigators in plain clothes were not stopped, not once, as they smuggled bomb parts past guards at 10 different security checkpoints.

That's at 10 different locations. They were able to pass through standard checkpoints like this one that you're seeing now, gaining access to high-level offices at places like the State Department, the Department of Justice, even, Heidi, at Homeland Security.

And there's another disturbing part to all of this, the undercover agents brought in real bomb parts for these tests and were able to build the bombs in bathrooms, and then, Heidi, walk around with them hidden in briefcases. They later detonated the devices at a remote site.

I want you to take a look at the result.

A lot of power there. The guards in question all work for the Federal Protective Service, an agency that handles security at 9,000 federal buildings. Mostly through the use of private contractors. All of this was part of a report from the Government Accountability Office, which is the investigative arm of Congress.

As you know, the report says that Federal Protective Service routinely failed to give these guards proper training, and in one region guards, Heidi, had not been fully trained on X-ray machines since 2004.

The GAO says the agency has already taken some steps to improve oversight, and the Senate Committee on Homeland Security will actually be taking up this issue later today at hearings.

COLLINS: Yes. There's also this appropriations bill that I think has a lot to do with it because you mentioned about the contract employees. And it had gotten very expensive because they moved this agency under the purview of so many different other agencies now under the Department of Homeland Security.

CARROLL: Correct.

COLLINS: It was with immigration for a while, right? And now they're talking about moving it to yet another body. It is apparently supposed to save some money. But obviously, the overall question is how much safer will everybody be? Because I think there were some other examples, right, of more security lapses?

CARROLL: Absolutely. And looking into the report, one example, Heidi, was of a guard who was supposed to be manning his post and said -- instead he was looking at an adult Web site. Another example of a baby in a carrier that was actually put through an x-ray machine. No one noticed.

COLLINS: Gee.

CARROLL: I mean, absolutely stunning examples of security lapses in this report and in terms of their investigation. And in terms of solutions that you were saying, there is some thought out there that perhaps what they need to do is hire more federal officers and stop contracting outside guards instead.

COLLINS: Yes, if that's all possible. All right. Well, Jason, we have a lot more coming up on this story today in our show. Sure do appreciate that. We're going to be talking with the former director of homeland security. We're also going to be talking with a worker under the purview of the Federal Protective Service.

So, thanks so much for that.

CARROLL: You bet.

COLLINS: Also want to let you know, the Senate hearing on that federal building security report gets under way just under an hour from now. So we, of course, will keep an eye on it for you and bring you any new information that we get.

There are about 9,000 federal buildings under the control of the Federal Protective Service. President Clinton ordered a review of security after the 1995 attack on the Murrah Federal Building in Oklahoma City. That review set up five security levels.

Level five buildings do include the Pentagon and CIA headquarters. Level four buildings, a lot of what we are talking about here, all have at least 450 federal employees and high-risk intelligence, confidential materials. Those include federal courthouses.

Meanwhile, a cyberattack is crippling government Web sites. Over the past few days sites ranging from treasury to transportation have been hit. That meant no one could get on to those sites. A similar cyberattack hit government and banking Web sites in South Korea at the same time.

Officials say the so-called denial of service attack was unusually sophisticated. "The Washington Post" reports as many as 26 sites in the U.S. are now affected, and those include the Treasury Department, Federal Trade Commission, and the New York Stock Exchange.

Partners in the fight. When the U.S. sent 4,000 Marines into southern Afghanistan last week, they were joined by 650 Afghan troops. They are battling the Taliban in Helmand Province.

Now there's a call for a greater commitment by Afghanistan's government to get more boots on the ground.

CNN Pentagon correspondent Barbara Starr is joining us now live with more information on this.

So, Barbara, tell us more about what you're hearing from your sources on this.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Heidi, as combat now enters its second week in southern Afghanistan, the Marines are saying what they have been saying for many, many weeks, which is they need more Afghan troops down south in Helmand Province.

They knew that they wouldn't have enough going in, but it is now settling in for the long haul as the Marines are in many towns and villages up and down the river valley. What has emerged, of course, is the need for Afghan troops to hold these areas over the long term.

We're already hearing that there will be a recommendation for an expansion of the Afghan military and police force, part of the new effort in Afghanistan. Not clear how any of that will actually be paid for. But this is part of the 60-day review of what is going on now.

Down south there has been some combat but they really haven't had major head-on battles with the Taliban. By all accounts the Taliban are basically retreating, biding their time and seeing what happens next. Heidi?

COLLINS: Barbara, a couple of things here. Can you talk a little bit more about the Afghan troops, their capability, how likely it is that more of them will begin taking part?

STARR: Well, it will be a matter of time. They have to get them trained up. You know, by all accounts, the Afghans are pretty tough fighters. They're very capable.

COLLINS: Yes.

STARR: But the real reason they want Afghan troops in this area is for cultural sensitivities.

COLLINS: Sure.

STARR: You know, to bring in aid, assistance, rebuilding, security. They want to put an Afghan face on this. In these towns and villages, these people are only going to be amenable to having a foreign presence, which is the Americans, for so long.

As one top commander said, if we can't bring in the Afghans, if we cannot deliver the aid and assistance, all we've done for these villages is chase the Taliban off. The real goal here is to make the conditions for these people better than they were, and that long term will help them turn away from any Taliban influences. Heidi?

COLLINS: Yes, ultimately, that would certainly be the best way to go about it. Barbara, quickly, the latest on casualties here now?

STARR: It has been a very tough week in Afghanistan. Let's just go back a couple of days. Monday, the worst day in over a year for troops in Afghanistan. Seven troops killed in one day. Seven Americans, a total of 10.

And later today the remains of those seven Americans who lost their lives in a series of attacks on Monday, their remains will be returned here to Dover Air Force Base in Delaware. Heidi?

COLLINS: All right. Our Pentagon correspondent, Barbara Starr, for us this morning. Thanks, Barbara.

STARR: Sure.

COLLINS: Iran's president has a message of higher and grander things in his second term. But some Iranians are trying to drown him out from their rooftops.

JACQUI JERAS, AMS METEOROLOGIST: I'm CNN meteorologist Jacqui Jeras. Heavy rain and flash flooding pounding the Gulf Coast today. And the storm prediction center just upgraded the risk of severe storms in the upper Midwest. The latest on a stormy and steamy forecast is coming up.

(COMMERCIAL BREAK)

COLLINS: A major player pulling out of the G-8 summit to deal with clashes back home. Soldiers have moved into an area in northwestern China where ethnic violence is boiling over between Muslim Uighurs and the Hahn Chinese. Uighurs are the minority, and feel they are discriminated against.

China's state-run media says President Hu Jintao left the G-8 in Italy to address that violence. And at least 156 people are now dead after riots this past week. Police there have reportedly detained 1,400 people so far.

In his first major television address since Iran's election dispute began, President Mahmoud Ahmadinejad defended the legitimacy of the vote. But even as the president spoke, chants of dissent could be heard from Tehran rooftops.

CNN's Reza Sayah, who had been reporting from Tehran until the government asked him to leave, is joining us now with more on this.

So, yes, this is the first time that we have heard him speak as a president of a second term.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: And those chants, by the way, the chants of Allahu Akbar, "God is Great," a form of protest that were heard again last night during his speech.

But we've had three weeks of violence, protests and demonstrations. But President Ahmadinejad essentially got on television last night and he said the elections were perfect, and in fact they were one of the best, ever.

This was his first televised speech since the disputed June 12th elections. He spoke about 30 minutes and called this a new beginning for Iran. He said he planned to put the economy and job creation and housing at the top of his agenda. As far as the elections go, he said they were the best ever.

(BEGIN VIDEO CLIP)

MAHMOUD AHMADINEJAD, PRESIDENT OF IRAN (through translator): This has been the healthiest and greatest election ever. All the people realize this with their pure hearts, that this election has been a great event, and epic. It has been absolutely healthy, because people themselves held the election. They themselves took part in that and they themselves counted the votes.

(END VIDEO CLIP)

SAYAH: Obviously a lot of people in Iran disagree with that assessment. Now hours earlier, opposition leaders Mehdi Karroubi, former president Mohammad Khatami, and disgruntled presidential candidate Mir Hossein Moussavi released a joint statement once again condemning these elections, calling for the release of all those people detained and describing the post-election crackdown as savage and shocking.

So, still, a lot of defiance there. Lots of buzz about tomorrow, which is the 10-year anniversary...

COLLINS: Right.

SAYAH: ... of the student protests. And there's a lot of buzz that there's going to be mass protests again on the streets, something we haven't seen in a couple of weeks.

COLLINS: Yes. I mean even Iran's state-run media saying that 20 people have been killed. It's next to impossible for us to verify if there were more or not because obviously no foreign media allowed right now. But certainly -- I imagine it is not the end of all of this. SAYAH: No. And this shows these two groups, not on the same page. You have the president calling it the best elections ever and still a lot of defiance out there.

COLLINS: Yes. Certainly. All right. Reza Sayah, sure do appreciate that. Thank you.

Also President Ahmadinejad says the election means a new era in Iran. What can we really expect? We're going to be talking about that with an expert on Iranian international affairs so make sure you stick around for that.

(COMMERCIAL BREAK)

COLLINS: With the unemployment rate approaching 10 percent now, some leading Republicans are saying the $787 billion economic recovery package has been a waste of money. Still there is talk in Washington circles about the need for a second stimulus bill.

Confused? Here to sort it all out is CNN's Christine Romans.

So, Christine, I'm glad you're here to solve all of this for us. How well is this first stimulus working when you look at the promises that were made and where we are now?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And I would argue this is actually already the second stimulus because we had a stimulus last year.

COLLINS: Yes.

ROMANS: $168 billion. How well is it working? Well, a GAO report due out later today. "The Wall Street Journal" says it's going to show that the state part of this thing, the federal government giving money to the states is going slightly ahead of schedule.

How have the projects spending part of this work? Well, about $499 billion has been allocated, Heidi. $158 billion roughly still available to be spent. Overall spent, about $56 billion.

Senate Majority Leader Harry Reid saying, look, 90 percent of the money still has to go out the door so be patient. There's still a lot of work to be done. And the money is moving out.

The White House has said that a 70 percent of the money for the stimulus should be out and -- you know, working in the economy by September 2010. So remember, parts of this were time-released even as critics say we want more, we want it faster, it's not going quickly enough.

COLLINS: Yes. Yes, I do remember. I mean that was part what some people were saying. They say, wait, you know, this is going to take so long to get in the system. What's it really going to be able to do as quickly as everybody wants us to turn things around? Is it actually saving jobs, though, as the White House promised it would? ROMANS: It is impossible to verify how many jobs it has, quote, unquote, "saved." You remember the White House promised that it would save or create 750,000 jobs by August? You remember that when this was sold, the stimulus was sold earlier this year, we were told that it would keep the unemployment rate from topping 8 percent.

COLLINS: Yes.

ROMANS: That would be the peak if we got the stimulus through. The unemployment rate is at 9.5 percent. So the critics will tell you, no matter how -- how fast it's going out the door, the job situation is worse than the White House had anticipated when it was selling the stimulus.

And that's why some people are asking for a second stimulus and saying we need more. But critics would say, look. Let it work. Others would say we didn't need it in the first place. Remember the tea parties across the country?

COLLINS: Of course.

ROMANS: People are saying we've borrowed money, we've borrowed money to dig ourselves out of a debt problem and stimulated the economy, that just doesn't seem to make sense. So, there's a lot of different...

COLLINS: Could be even worse later. Yes.

ROMANS: Yes. There's a lot of different voices on this. But bottom line is money is going out the door. About 10 -- at least 10 percent of it is already out there going out the door but there is a lot more to be -- a lot more to be spent in a lot of different parts of the economy.

COLLINS: All right, we are watching it. Sure do appreciate it, Christine Romans of our CNN Money Team.

ROMANS: Sure.

COLLINS: Thank you, Christine.

Jacqui Jeras standing by now in the severe weather center to talk a little bit more about all the rain in the Gulf Coast. Right?

JERAS: Oh, my gosh. Yes. It is really wet out there, Heidi.

COLLINS: Yes.

(WEATHER REPORT)

COLLINS: All right.

JERAS: Are you coughing? Are you choking in the heat?

COLLINS: Yes. I'm stifled. All right, Jacqui, we'll check back later on. Thank you. JERAS: OK.

COLLINS: It is known as one of the world's cleanest cities. So, why are garbage bags stacking up around Toronto? We'll tell you what the stink is all about.

(COMMERCIAL BREAK)

COLLINS: Bombs in bathrooms. There is this new report out that we are going to be discussing here a little bit later in the show. But we want to know what you think about it, too.

It's been done by the Government Accountability Office, the GAO, and they've been able to smuggle some bomb components past security of some federal buildings across this country.

So we would like to hear a little bit more about what you think. You get a little bit of a synopsis of the story here on our Web site which is CNNnewsroom.com/heidi. Just go ahead and go there, and let us know what you think.

Should reports like this actually be made public or do they put a little bit too much information into potentially dangerous hands? So we'll be talking about that here. And we welcome your blogs.

Back in a moment on the CNN NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: There you have the opening bell there for this July 8th. A Wednesday. In fact on Wall Street, stocks are poised for a quiet open again following the Dow's more than 160-point tumble yesterday.

Susan Lisovicz is at the New York Stock Exchange with a preview of today's market action and news of a big showdown in the tech world.

Very interesting story, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Oh, yes, no question about it. Of special interest to Microsoft, Heidi.

COLLINS: Yes.

LISOVICZ: Overall, the "Wall Street Journal" says after more than three months of greed, fear is returning to global financial markets. That's something we've been seeing in recent days. Could be also that, you know, the sell-off coming right ahead of the advance of the quarterly earnings season. Start at the close of trading today with Alcoa's report. The aluminum giant expected to report its third straight quarterly loss. And overall the estimates for companies in the S&P 500 is for a decline of 35 percent in profits year over year. So still challenging times for corporate America.

We're also closely monitoring the G-8 summit. Begins in Italy today. President Obama meeting with leaders of other industrialized nations, including Japan, Britain and France, to talk about the world's economic outlook.

Now, about that showdown in the tech sector. Google preparing to challenge Microsoft's dominance of the PC operating system market. The search engine giant launching its new Chrome-OS for lower cost netbook computers in the second half of next year. So we're going to have to wait for it, but of course Microsoft's Cash Cow has been its Windows operating system.

And, finally, want to mention very quickly, shares of Amgen surging right now 15 percent. The biotech company said its experimental osteoporosis drug met a key goal of preventing bone injuries in breast cancer patients.

Very encouraging, investors responding and hopefully patients responding as well as that drug continues to treat patients from suffering from such a prevalent disease.

In the first minute of trading, we are seeing a little bit of gains here. The Dow, the NASDAQ, S&P 500, all up at least .25 percent, Heidi. Good start.

HEIDI COLLINS, CNN ANCHOR: All right, yes. Lots of information this morning, obviously. All right, Susan, we're going to check back with you later on.

Thank you.

LISOVICZ: You're welcome.

COLLINS: Iranian President Mahmoud Ahmadinejad declaring a new era for his country while discounting the dispute over his re- election. In a televised address to Iranians last night, the president promised, quote, "higher and grander" things in his second term. But will we actually see any changes?

Mohsen Milani is talking to us about that this morning. He is a professor at the University of South Florida.

Thanks for being with us again this morning.

Listen, if we could, I want to just put these words on the screen from President Mahmoud Ahmadinejad for our viewers at home. We heard him a little bit earlier, but this was said in that nationally- televised address yesterday.

"This was the most free election anywhere in the world. It was a great event."

Mohsen, are you at all surprised by those comments yesterday? I mean, did anyone think that he would actually come out and say, you know, maybe this wasn't so fair, we might want to really consider recounting all the votes and maybe I didn't actually win?

MOHSEN MILANI, PROFESSOR, UNIVERSITY OF FLORIDA: Good morning to you. No, I'm not surprised by what Mr. Ahmadinejad said. It is very clear that the election was an important event, but that election has been disputed by a major portion of the Iranian population, as well as a leading number of leading clerics and leading politicians in the Islamic Republic of Iran. And therefore, Mr. Ahmadinejad to suggest that this is the end I think is premature. It is not the end of this dispute.

COLLINS: Yes. Well, especially, because in that same televised address across the nation, he never even mentioned the violence that broke out in this exact dispute.

MILANI: Yes. I think what you're seeing here is an attempt by President Ahmadinejad to pretend as if Iran is back to good old days, that things have become normalized. In fact, the opposition to Mr. Ahmadinejad has claimed rightly so that Iran now has entered into a new era in which the security forces are in command, and this is unacceptable to many people inside the Islamic Republic itself, as well as by a significant portion of the Iranian population.

COLLINS: Yes. And he also said something kind of interesting. I don't want to make too much of it, but curious of your thought. He said that criticism of the government is actually key to the success of the nation.

Do you see him wavering at all here? Or do you see some of this change that people are waiting for coming from him?

MILANI: I read the Persian text of his speech, and I think there was a subtle message, a message that he is going to have a complete reshuffling of his cabinet. And I think this message is in response to a call by a leading conservative Ayatollah ** for a government of national reconciliation.

I think he's leaving the door open...

COLLINS: Really?

MILANI: ... for inviting people from the opposition.

Now Mr. Ahmadinejad, of course, was not very explicit about this call. He essentially said that he's willing to make fundamental change in Iran. In fact he said he is the epitome of change, and that he's willing to make some changes in his cabinet, that some mistakes were made, but now I think he is trying to leave the door open for a possible cabinet of national reconciliation.

COLLINS: Well, I mean, I think that's pretty interesting, you saying there could be this complete reshuffling of his cabinet. You're saying that he would actually consider bringing on some of the opposition?

MILANI: I think to be perfectly honest with you, we know how this story has started. But nobody really knows how it's going to end. I think Mr. Ahmadinejad knows that there are powerful figure inside the Islamic Republic who are going to oppose him. And one way he can deal with this is to leave the door open for a possible compromise. COLLINS: Understood. And, obviously, U.S. relations with that country would be very, very interesting at that point if that in fact were to happen. We certainly do appreciate your insight today.

Mohsen Milani from the University of South Florida, thanks so much.

MILANI: Thank you very much, Heidi.

COLLINS: From Iran now to neighboring Afghanistan, where fighting is raging across the country. Some of the violence is happening in the Helmand River Valley.

U.S. forces launched an offensive against the Taliban there last week and here is what we know. The offensive is going on in the south, but attacks are up in the north and east as well. Monday was the deadliest day for NATO in Afghanistan in almost a year. Ten NATO troops were killed, seven of them were Americans. U.S. military officials say they need more help now from Afghan troops to make the Helmand offensive work.

Here's a little more on that area. The Helmand River Valley is possibly the most dangerous area in Afghanistan for NATO forces. British troops have taken the security lead there since 2006. They've been joined by U.S. and other NATO forces since then. The Helmand River Valley itself is a hot commodity. About two-thirds of Afghanistan's opium supply comes from there. It's seen as a major financial source for the Taliban. The United Nations says opium production netted insurgents between $50 million and $70 million last year.

President Obama right now joining other leaders of the world's top industrialized nations for the G-8 Summit. Mr. Obama arrived earlier today for the session in L'Aquila, Italy. Topping the ambitious agenda for the leaders, how best to handle this stage of the global recession. Two other major issues they'll be talking about, how to stop the spread of nuclear weapons and climate change.

Well, did you know, the group of eight used to be the G-6?

Yes, we remember that. Some members want to add even more countries now, though.

So our Josh Levs is looking into it. And he is here with a few more tidbits on that.

Hey, Josh.

LEVS: Hey, Heidi. G-8 TV going online this year.

Take a look at this quickly behind me. G-8 TV is part of the main Web site of the G-8 event, the summit happening in Italy. And by the way take a look at the venue where they'll actually be meeting. You got an image of it there. Pretty incredible.

I wanted to pop in here quickly, just give you all some basics facts on the G-8, where it comes from, what it's all about. Let's go straight to a graphic that will give you some important info, because a lot of people think of it as a group. It's actually not an international organization. And as they say there, it doesn't even have a headquarters.

It's really a process that leads to this annual summit. So what's happening now, where President Obama has gone is what the G-8 is. It is this annual summit, and this is where big stuff happens.

Got a map for you here, where we're highlighting what the members are. Take a look at that. Here you can see them all highlighted. Canada, USA, UK, France, Italy, Germany, Russia and Japan. So, you have wealthiest nations around the world that get together and discuss some major topic.

And here, there a few of what's on the agenda for this year on this next screen. You got the economic crisis obviously. They are working to boost international trade. And I know that sounds big picture-ish, but keep in mind that affects the prices of groceries, prices of almost everything.

They are also planning to take on climate change. Talk about what these nations can do. And they are going to talk about development in foreign nations. And, Heidi, that's where you also get to a lot of controversy. A lot of people saying these wealthiest nations are not doing enough. We have some more about that at cnn.com. But that's one of the big sticking points every year. Do these wealthy nations do enough to reach out to poor nations?

COLLINS: Yes. No question.

In fact, though, every one of these summits has a theme, right?

LEVS: Right. Yes, they have a theme. And they have an interesting one this year. Take a look at this here. I'll put it up on the screen for you.

They're calling it "People First." And this is their statement. They're saying if we're going to make it through the crisis, we have to consider social aspect. And they're saying place people in the center of government action by pursuing policies designed to restore people's confidence.

So, coming into this summit where President Obama and these other leaders are, that's what they are focused on. Will they do that? Will they achieve it? I know we'll be hearing controversies on both sides, and that's what we'll be watching out for.

Heidi?

COLLINS: All right. Very good. Josh Levs, thank you.

LEVS: Thanks.

COLLINS: A strike affecting city services in Toronto is now in its third week with the biggest stink over garbage pile-ups. Toronto's reputation as one of the world's cleanest cities now being put to the test.

To keep garbage bags off the sidewalks, the city has set up temporary dumping sites at a park, and an arena. Another dumping site was closed when it filled up. One community has also created a composting site so residents are feeling the effects and smelling them, too. But what about the tourists?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Trash is all over the place and it's kind of messy, really. We came from, like, Montreal, and it's perfect there. But here, sort of dirty.

(END VIDEO CLIP)

COLLINS: The 30,000 city workers on strike are fighting for post cuts in benefits and sick pay.

Coming together to say goodbye. An emotional musical, star- studded tribute to the King of Pop who for one little girl will always be Daddy.

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COLLINS: A sleeping guard and a baby in a stroller going through a metal detector. That's just part of what undercover investigators saw during their review of security at some federal buildings. A new report shows they were also able to smuggle bomb components right past the guards.

David Wright is the president of American Federation of Government Employees, Local 918. That's the union that includes Federal Protective Services Guards.

He is joining us now from our Washington Bureau to talk a little bit more about this.

David, thank you for being here.

First off, more than 1 million government employees work in these 9,000 facilities all across the country that we're talking about, guarded by the Federal Protective Service. The least of 350,000, I believe, in the Washington area.

When you saw this report, which I'm not sure when that was, how concerned were you?

DAVID WRIGHT, PRESIDENT, AFGE LOCAL 918: Well, to be accurate, I've not actually seen the report yet. That's not been made available to me. I've been given some highlights. But the findings are disturbing.

Actually, I represent the law enforcement officers of the Federal Protective Service and the administrative employees in the Federal Protective Service. I have to make a distinction that the guards that were caught sleeping and the other problems that we have are contract -- private contractors.

COLLINS: OK. Well, let's elaborate on that for a moment if we could. Because the best that I can tell after looking at some of this and reading the reports that were then put out after this investigation went down -- we should say by the GAO here. That is part of the problem, is it not? And has been part of the problem with several other investigations that revealed some concerns here. Contract workers. Take us through that.

WRIGHT: Correct. It's a huge problem and specifically with Federal Protective Service. We were originally under the General Services Administration since its inception in 1971. In 2003, we had approximately 7,000 private contract guards across the nation in our federal buildings.

COLLINS: Right.

WRIGHT: Since 2003 -- let me back up just a bit. In 2003, we had over 1,400 employees and federal law enforcement officers in Federal Protective Service for oversight. In the intervening years, the number of contract guards have doubled and the size of the Federal Protective Service has shrank. And it is absolutely a funding issue.

COLLINS: Yes. It's expensive. Right?

WRIGHT: It's expensive, number one. And to be more accurate with the funding issue, Federal Protective Services funded through security fees. So Federal Protective Service basically receives 66 cents per square foot in every General Services Administration property.

COLLINS: OK.

WRIGHT: You know, that may be a way to run a business, but it's no way to run a law-enforcement agency.

COLLINS: Well, I guess overall the question for you would be, today, are people inside those buildings safe or not?

WRIGHT: I would absolutely like to look at the report before I make comments. I have absolute concerns and I absolutely know that there is plenty of room for improvement. And Federal Protective Service is going to be here. The union will be here to bring these issues to the fore. And we will be speaking to Congress on solutions.

COLLINS: Yes. Of course there's a hearing on all of this today as well that we will be following closely here.

WRIGHT: Right.

COLLINS: Also going to be talking with the former director of homeland security on this issue.

WRIGHT: Right.

COLLINS: David Wright, we sure do appreciate your time here. Thanks so much.

WRIGHT: I appreciate it, Heidi.

And I want to take a moment now to get over to the severe weather center. Jacqui Jeras standing by, talking about some of this rough weather in the northeast as well, last night.

Right, Jacqui?

(WEATHER REPORT)

COLLINS: All right, Jacqui, covering all the way across the entire nation. Appreciate that. We'll check back later on.

Meanwhile, blue vests and bulk buying. A familiar site in unfamiliar territory. What happens when the world's biggest retailer meet the world's second biggest population.

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COLLINS: One final entrance. Michael Jackson remembered yesterday by many as the greatest entertainer ever. A man whose music united people of all ages, religions and races. Jackson was rehearsing his comeback concert on that very stage in the Staples Center in Los Angeles the night before he died. His singers and dancers among those who took part in his star-studded memorial. Millions watched from around the world and tears flowed when Jackson's only daughter poured out her heart.

(BEGIN VIDEO CLIP)

PARIS JACKSON, MICHAEL JACKSON'S DAUGHTER: Every since I was born, Daddy has been the best father you could ever imagine. And I just wanted to say I love him so much.

(END VIDEO CLIP)

COLLINS: The family held a private service before the memorial. Still no word on where Michael Jackson will be buried.

There's a lot going on in the next hour of the CNN NEWSROOM, and our crews are in place to break it all down for you. Let's go ahead and begin with Jim Acosta now in Washington.

Hi, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, Heidi. Has the White House stumbled on the stimulus? I'll have that story coming up in the next hour of the NEWSROOM.

POPPY HARLOW, CNNMONEY.COM: I'm Poppy Harlow in New York. Plan for a massive wind farm in Texas have hit a major roadblock. So what will T. Boone Pickens do with more than 600 wind turbines coming his way. We'll have more on that, Heidi, at the top of the hour. ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Human sperm manufactured in a lab from stem cells. What will they think of next? I'll have that at the top of the hour.

COLLINS: That will get you to listen up. All right. Thanks, guys. Sure do appreciate that.

Also, how safe are you in a federal building? A new report raises serious questions about security. We'll tell you what undercover investigators found.

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COLLINS: Wal-Mart takes heat in this country for its effect on mom-and-pop stores, but now for the world's largest retailer open for business in India. Sara Sidner tells us smaller stores may welcome the rollback prices there.

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SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT (voice-over): Here in the Holy City of the Golden Temple, an American retail giant is hoping to strike gold. Wal-Mart has finally made its way to India in a joint venture with one of the country's best-known companies -- Bharti Enterprises.

RAJAN MITTAL, VICE PRESIDENT AND MARKETING DIRECTOR, BHARTI ENTERPRISES: We understand the Indian consumer. We understand the Indian psyche. They'll bring the science and art of retailing. And I think it's a good mix to understand what the Indian consumer needs.

SIDNER: But not everyone can shop here. This is a wholesale store, aptly named Best Price Modern Wholesale. Here, only licensed business people, hotels, or institutions are allowed in. India's strict business rules forbid foreign companies from direct retail for fear multinational corporations will wipe out the little guy.

(on camera): Big-box stores are almost non-existent in India. Ninety-five percent of the buying and selling happens in mom and pop shops. You want luggage, you buy it here. You want dried snacks, you have to go somewhere else. You want vegetables? You go to yet another place.

(voice-over): For some businesses, it could mean visiting up to 25 different places every day just to stock the shelves, until now.

JAGJIT SINGH HUNDAL, GENERAL MANAGER, COUNTRY INN AND SUITES, ANVITSER: For the hotel industry, it's a blessing, because everything -- you talk about stationery, you talk about crockery, cutlery, kitchen, your groceries, your even meats, your fish, everything is available under one roof.

SIDNER: The store also appeals to Sundar Singh, who owns a tiny shop in a nearby village.

"I travel 40 kilometers but I save a lot of money and get good quality. I visit this place four to five times a week."

But not everyone is excited about the new store in Punjab.

Small distributor Parwan Sharma (ph) is worried. He said his business has dropped by 15 percent in the month Wal-Mart has been open. But the Bharti Wal-Mart partnership says with more than a billion people in India to serve, there's room for everyone to do good business here.

CRAIG WIMSATT, CHIEF OPERATING OFFICER, BHARTI WAL-MART: We believe it's been a very good move, and we have high hopes for the opportunities to be able to grow this format in other parts of India.

SIDNER: Bharti Wal-Mart plans to open 15 stores across India within the next few years.

Sara Sidner, CNN, Amritsar.

(END VIDEOTAPE)